GDP up +0.3% in Q2. Consumption still robust. Exports plunge. BOJ could decide to sit tight. Earnings of listed firms down.
- Japanese GDP maintains positive momentum in Q2 with +0.3% growth
- Consumption, up +0.6%, bolsters growth
- Falling exports (-10.2% in August), in particular to Asia, hurt Japanese economy
- Trade deficit shrinks to -136 billion
- Manufacturing still under pressure
- Leading indicators stabilising?
- In spite of lower unemployment rate, consumers increasingly worried
- BOJ likely to remain patient
- BOJ unable to weaken the yen
- Avoid Japanese bonds
- Earnings of Nikkei-listed corporates down -12%